H. Zubko: Ukraine and Germany to prepare a joint statement on non-binding financial loan to restore Donbas in January

In January 2015, Ukraine and Germany will prepare a joint statement on non-binding financial loan to restore infrastructure of Donbas and a framework bilateral agreement regarding government guarantees for the loan by the Federal Government of Germany. The agreements were previously reached during the negotiations between President of Ukraine Petro Poroshenko and German Chancellor Angela Merkel, Vice Prime Minister - Minister of Regional Development, Construction, Housing and Utilities Hennadii Zubko stated.

"Pursuant to the agreements between President of Ukraine Petro Poroshenko and German Chancellor Angela Merkel, the Governments of Germany and Ukraine are taking measures for the preparation of a joint statement on allocating Ukraine a EUR500-million non-binding loan. These funds will be spent on the reconstruction and modernization of the electricity, heat, water supply and sewage infrastructure, the restoration and construction of schools and hospitals," Hennadii Zubko said.

He added that Donbas reconstruction projects will be agreed in the framework of a high-level bilateral group.

The loan will be provided by KfW Bankengruppe, with which the Ukraine’s Regional Development Ministry is carrying out joint work on loan preparations in accordance with the legislation of Ukraine.

"All the necessary procedures for approving and acquiring the loan will be completed tentatively in January 2015", Hennadii Zubko said.